Prezzo shares have slipped 0.5p to 33.5p today on profit taking after this week's results, while Clapham House is down 1.5p at 73p. But analysts at KBC Peel Hunt said:

"Clapham House and Prezzo are two companies where we believe there is a strong possibility of corporate activity within the next 18 months.

"The corporate catalyst at Prezzo is more straightforward. Management (who with family control more than 60% of the equity) have made one failed attempt to take the company private and we believe they will try again once credit markets improve sufficiently.

"At Clapham House it is a bit more complicated. The jewel in the crown is GBK but, unfortunately, the group also owns Tootsies which has been and continues to be disappointing. A disposal of Tootsies would likely lead to a re-rating but, in our view, the real potential for upside would come from 24% shareholder Capricorn Ventures making a bid. The problem is, that despite its best efforts, management has thus far failed to sell Tootsies."

So out of the two, KBC reckons Prezzo is the more likely immediate target.